Example

Significant increases in volume can be seen on days [1] to [4]. The first three occur on days when price closes near the daily high, indicating accumulation (buying pressure). On day [4] price closes near the daily low, warning of
distribution (selling pressure). Low volume on day [5] indicates uncertainty, but is followed by rising volume and strong closes, signaling accumulation.

Volume Colors

Selecting Volume With Close Colors in the Indicator menu, allows you to color volume bars according to whether price closes up or down on a given day.

Standard colors are green (Up days) and red (Down days) but can be varied by selecting Format Charts >> Colors >> Indicator Up (+) and Indicator Down (-) on the chart menu.

Volume Twiggs Standard Deviation

I prefer to have less clutter on the chart and only highlight days with abnormal volume. Select Volume Twiggs Standard Deviation in the Indicator menu to highlight volume bars that are one or two standard deviations above or below average volume. High volume normally denotes opposition to the current trend and low volume often denotes lack of support for the trend. Volume is especially useful when read in conjunction with the daily candlestick pattern and support/resistance levels.

Default settings are one standard deviation and a moving average of 30 days. Standard colors are red (High volume) and green (Low volume) but can be varied by selecting Format Charts >> Colors >> Indicator Up (+) and Indicator Down (-) on the chart menu.

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